Thank God! Thanks To IUEA-CEPA, Indonesia Can Export Duty-Free Gold To Palm Oil To The United Arab Emirates

Photo: Doc. Ministry of Trade

JAKARTA - The Ministry of Trade said that a number of Indonesian products exported to the United Arab Emirates (UAE) would be exempt from import duties. This benefit will be felt by Indonesia when the Indonesia-United Arab Emirates Comprehensive Economic Partnership Agreement (IUAE-CEPA) takes effect in early January 2023.

The Director General of International Trade Negotiations at the Ministry of Trade, Djatmiko Bris Witcaksono, revealed that this is one of the advantages that can be utilized. Even so, he said, there are still a number of stages to be able to achieve the implementation target on January 1, 2023.

Djatmiko revealed that a number of Indonesian products exported to the UAE will receive zero percent import duty. Among them are gold products to palm products.

For example, said Djatmiko, Indonesia's most exports to the UAE, and reached hundreds of millions of dollars are gold jewelry through Singapore. Because Singapore is already free of import duties.

Then, continued Djatmiko, palm products will apply a zero percent entry fee policy. Furthermore, steel and paper products are also recorded to receive the same policy. Then, footwear products, textiles, coal, soap, butter, and batteries to cloves are also included in the list that receive zero percent import duty.

"So it's equivalent to 99.60 percent of Indonesia's exports entering the UAE. It can be free of zero percent entry fees, even if in the first year 90 percent of our exports are zero. Now the remaining 9 percent is within a span of 5 years to zero percent," he said at the conference. press virtually, Monday, July 4.

Through the convenience provided by this agreement, Djatmiko also asked Indonesian exporters to take advantage of this. So that it can encourage maximum exports.

However, said Djatmiko, there are a number of conditions for this policy to be implemented, including that Indonesia and the UAE have completed ratification, made notifications, and other technical provisions needed for implementation. The technical provisions referred to are the Regulation of the Minister of Finance regarding the determination of the amount of tariffs.

Furthermore, Djatmiko said there are no rules limiting the time for the ratification process. According to him, if the government and the DPR are in one perspective, then ratification can be fast.

"Then the Ministry of Trade, if all of that has been completed, can run. This is the condition. So I hope that I will also be as strong as possible with the Minister, we can finish it," he explained.

Improving Economic Relations

On that occasion, Djatmiko said that through this agreement, it is hoped that it will be able to improve economic relations between Indonesia and the United Arab Emirates. Especially in the field of trade and services.

"Technically, we hope that the CEPA agreement between Indonesia and the UAE will open up market access and goods, services, and investments for both parties," he said.

Djatmiko also compared the contents of this agreement with those previously carried out by Indonesia and other countries. He claimed that the agreement this time was different from the previous agreement.

"This is a very comprehensive scope, yes, there is trade in services, investment, there is something related to intellectual property rights," he said.